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MPs vote for 1% benefits cap

MPs have voted in favour of a proposed 1 per cent cap on raising benefits by a majority of 56. Ministers say the cap is needed because it is unfair that state handouts have been rising twice as fast as wages during recent years of austerity.

IFS: 'Benefit cap will affect working people and those out of work'

Robert Joyce, Senior Research Economist at the Institute for Fiscal Studies (IFS) has told ITV News that the 1% benefits cut will affect both those who work and those who do not.

He added that although there will be a greater proportion of people who do not work affected by the cap, the fact that the cuts will hit both those in and those out of work will mean that, "the impact on people's incentive to move in to work will be somewhat mixed."

And that for some people the cuts will mean they are better off out of work.